J.S.P. lines up 4 low-rise developments

MAI-listed property developer J.S.P. Property Plc will launch four new projects worth a combined 2 billion baht in the next four months, focusing on the low-rise segment and adopting a pre-built strategy to keep revenue consistent.

Chief financial officer Sithiporn Ratanaporn said low-rise and pre-built development will be able to speed up the company’s cash flow from the usual one year to six months, eventually leading to a cut in expenses.

“We started the property business with shophouses and jumped into condominiums, which caused a drop in revenue during construction periods,” he said. “With our new approach revenue realisation is faster and performance will be less volatile.”

In the third quarter, J.S.P. posted a net loss of 85.2 million baht against a net profit of 149 million baht in the same quarter of last year, with profit in the first nine months falling to 121 million baht from 717 million in the same period last year.

It plans to launch four new projects in four different locations including J Condo on Rama II Road worth 265 million baht and J City Tiwanon-Bangkadi townhouse project worth 458 million baht this month.

In March 2017, it will launch J Grand Sathorn-Kalapapruek, a three-storey townhouse project worth 610 million baht and J City Rattanathibet-Bang Bua Thong townhouse project worth 687 million. All will have units priced from 1.3-5.5 million baht.

Pairoj Wattanavarodum, senior executive vice-president, said the company will focus on the low-rise market in the pricing segment less than 5 million baht as it has a larger customer base. The bank rejection for the low-rise segment is also lower than that for condos.

JSP shares closed yesterday on the SET at 1.14 baht, unchanged, in trade worth 9.97 million baht.